Correlation Between Niloerngruppen and Zinzino AB
Can any of the company-specific risk be diversified away by investing in both Niloerngruppen and Zinzino AB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Niloerngruppen and Zinzino AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niloerngruppen AB Series and Zinzino AB Series, you can compare the effects of market volatilities on Niloerngruppen and Zinzino AB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Niloerngruppen with a short position of Zinzino AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niloerngruppen and Zinzino AB.
Diversification Opportunities for Niloerngruppen and Zinzino AB
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Niloerngruppen and Zinzino is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Niloerngruppen AB Series and Zinzino AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinzino AB Series and Niloerngruppen is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Niloerngruppen AB Series are associated (or correlated) with Zinzino AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinzino AB Series has no effect on the direction of Niloerngruppen i.e., Niloerngruppen and Zinzino AB go up and down completely randomly.
Pair Corralation between Niloerngruppen and Zinzino AB
Assuming the 90 days trading horizon Niloerngruppen AB Series is expected to under-perform the Zinzino AB. But the stock apears to be less risky and, when comparing its historical volatility, Niloerngruppen AB Series is 1.76 times less risky than Zinzino AB. The stock trades about -0.05 of its potential returns per unit of risk. The Zinzino AB Series is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,060 in Zinzino AB Series on September 1, 2024 and sell it today you would earn a total of 1,810 from holding Zinzino AB Series or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niloerngruppen AB Series vs. Zinzino AB Series
Performance |
| Timeline |
| Niloerngruppen AB Series |
| Zinzino AB Series |
Niloerngruppen and Zinzino AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niloerngruppen and Zinzino AB
The main advantage of trading using opposite Niloerngruppen and Zinzino AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niloerngruppen position performs unexpectedly, Zinzino AB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zinzino AB will offset losses from the drop in Zinzino AB's long position.| Niloerngruppen vs. eWork Group AB | Niloerngruppen vs. Softronic AB | Niloerngruppen vs. Bjorn Borg AB | Niloerngruppen vs. Novotek AB |
| Zinzino AB vs. eWork Group AB | Zinzino AB vs. Softronic AB | Zinzino AB vs. Niloerngruppen AB Series | Zinzino AB vs. Transtema Group AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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